‘Don’t ask for new EU measures: take action’

EU Farm Commissioner Phil Hogan has called on member states at risk of exceeding their 2014/15 milk production quotas to “take corrective action”, rather than ask for new EU measures.

The hard line in Brussels on quotas came as Irish over-production up to November 30 fell slightly, at 6.51% over quota, compared to 7.15% over a month earlier, but only 6.93% over at the end of September, and 6.44% over at the end of August.

At a meeting of the Council of EU Agriculture Ministers on Monday, Ireland’s Simon Coveney was among those who called on the commission to mitigate the impact of superlevy fines.

“I would certainly be strongly supportive of a facility to phase the burden of superlevy payments over an extended timeframe, in what will already be a difficult year for the sector,” he said.

“This is the very least that should happen, and should not preclude the additional option to adjust the butterfat coefficient.”

Mr Coveney also called on the commission to use market management tools in response to the milk price slump. “Instruments such as Aids to Private Storage, Intervention, Export Refunds, and Exceptional Measures are designed to deal with temporary troughs in price. These tools should be deployed, at the appropriate time, to ensure they have maximum effect and that they place a real floor under the market, should that be necessary in the New Year”.

Mr Coveney has warned that price will become a serious issue when spring milk starts to come through. “We also have product in storage that our co-ops must off-load, and this is a concern.”

The EU recently extended private storage aid for butter and skim milk powder until February 28. Public intervention for both products will be open for use from January to October, welcomed by Irish co-ops as a signal the commission will act to stabilise the market.

This week’s 2.4% rise in the GlobalDairyTrade auction price has also been welcomed, “showing some slight respite for dairy prices”, ICOS said.